Many countries, including Panama, require reporting the movement of money, monetary instruments, or negotiable instruments exceeding $10,000. While generally you can move any amount of money across borders, it necessitates reporting to both the departing and entering countries. Bringing large sums of cash into Panama is not advisable. Laws vary between countries, so consulting official websites for current information is crucial.
Currency, including all foreign currencies, falls under the $10,000 limit, using current day conversion values. Conservative currency valuation predictions are recommended to avoid exceeding the limit. Traveler’s checks are generally treated as cash, regardless of endorsement status, likely due to easy replacement if lost or stolen.
Bullion is also included, with its value based on current market rates. For example, a $20 gold coin’s value is determined by the current price of an ounce of gold, not its face value. Rare coins are valued at their numismatic collector value, not their original denomination.
A negotiable instrument encompasses any check or money order in bearer form, payable on demand without conditions, or endorsed without restriction. This includes instruments payable to a fictitious payee or structured so ownership transfers solely with possession, like bearer bonds. Promissory notes or checks with the payee name left blank are also included. Bearer shares of corporations fall under this category, which is why corporations we form are set up with a value of $10,000 only (nominative value not paid in cash) so as they fall under the declaration limits.
Generally, a monetary instrument excludes checks, money orders, or bank checks payable to a specific entity that hasn’t endorsed them or has endorsed them restrictively to another specific entity. Warehouse receipts and bills of lading are also excluded.
Any combination of the above exceeding $10,000 must be reported. Regulations regarding family members traveling together are often ambiguous and vary by country. What defines ‘traveling together’ and the age of a minor also vary, requiring individual country-specific verification.
Penalties for non-compliance vary but typically involve confiscation, fines, and potential criminal charges.
For any questions regarding negotiable instruments and Panama, we can provide answers as a Panama Law Firm.